ABSTRACT

The previous chapters have argued that financial instability is a core element of modern capitalism. Over periods of prolonged economic growth, capitalist economies increasingly rely on Ponzi finance to continue to grow. In addition, over the past half century, the structure of capitalism has moved to a stage that is highly dependent on Ponzi finance to generate economic growth. This greater reliance on Ponzi finance has made the economic system more prone to destructive debt deflations that have required larger and larger government emergency interventions to avoid them.